Question about House Foreclosure

[LadyyRedd]

If a house is being foreclosed on at a certain date, are the owners allowed any time after the foreclosure proceeding starts to go back into the house to collect any of their belongings?

Kimya

 

[MassJester]

Foreclosure is a multi-stage process. The home actually changes ownership at the point of public auction in most places. At that point, you are oblidged to collect your belongings, without doing any damage to the property or removing any fictures, and depart.

There are defenses to foreclosure that you should pursue. Most loan organizations have a mitigation department with whom you may negotiate terms, or failing that, there are "quick sale" brokers and/or bankruptcy protection.

 

[LadyyRedd]

It's not me, a relative (seriously! lol). The relative doesn't want the house anymore, just wants it to go to foreclosure. The public auction is tomorrow (Friday) and wants to know if she'll be given a chance after that to get anything else out that she wants to.

Kimya

 

[MassJester]

It's not me, a relative (seriously! lol). The relative doesn't want the house anymore, just wants it to go to foreclosure. The public auction is tomorrow (Friday) and wants to know if she'll be given a chance after that to get anything else out that she wants to.

Kimya

Allowing the house to be sold at auction is the least desireable end. If they do not recover the outsanding value on the note (including collection and foreclosure costs), she will likely still be liable for the balance.

She can pursue Bankruptcy protection today (it can be accomplished very quickly).

Otherwise, she should be packing.

 

[LadyyRedd]

Allowing the house to be sold at auction is the least desireable end. If they do not recover the outsanding value on the note (including collection and foreclosure costs), she will likely still be liable for the balance.

She can pursue Bankruptcy protection today (it can be accomplished very quickly).

Otherwise, she should be packing.

The loan isn't in her name. The debt, mortgage and title was only in her husband's name. He passed away and she could not afford the mortgage and couldn't sell it, so they are foreclosing. She's already packed and out, but there are still a few items in the house and she doesn'tn know if she can get them tonight and wants to find out if they will still let her get them after the auction tomorrow.

Kimya

 

[MassJester]

The loan isn't in her name. The debt, mortgage and title was only in her husband's name. He passed away and she could not afford the mortgage and couldn't sell it, so they are foreclosing. She's already packed and out, but there are still a few items in the house and she doesn'tn know if she can get them tonight and wants to find out if they will still let her get them after the auction tomorrow.

Kimya

She really needs to talk with an attorney. In several states, debts are transferred to the spouse upon death.

As for getting the things out--it's probably not a problem, but a great deal depends on the new owner.

 

[LadyyRedd]

She really needs to talk with an attorney. In several states, debts are transferred to the spouse upon death.

As for getting the things out--it's probably not a problem, but a great deal depends on the new owner.

Maryland's not a community property state. His debts are not transferred to her, she's already talked to her attorney.

Please....no flames or anything. I'm just trying to find the answer for her to the question.

Kimya

 

[MassJester]

Wasn't trying to flame--sorry for that. If she has an attorney, then he/she will be the best source of information on post-auction parameters.

 

[DisneyGirl4188]

She will be able to go back and get her things. Technically, she can refuse to vacate the home and then eviction proceddings will begin.

A few things can happen.
1.) The house goes to sale. Then the new buyers have time to get the money together and purchase the home. During this time the old owner can remain in the house. After the new owners close, they will be responsible for having the old owner removed.
2.) The house doesn't sell. The house then reverts back to the mortgage company. They can begin eviction proceedings.

Also, some companies will offer compensation for leaving right away.

She may want to look into filing bankruptcy. First, it will allow her to remain in the home for some time (if she wants). Secondly, it will stop the auction. The problem with foreclosure is if the house doesn't sell for the loan amount, they will come after her for the remaining balance.

Did she look into reinstating the house and then trying to sell it? Anytime during foreclosure you can reinstate or payoff the loan, but many people don't realize that.

If you have any questions, let me know. I used to work at a law firm that handled foreclosure (we did the foreclosing).

 

[Toby'sFriend]

i think it really varies by state.

In some states they send the Sheriff in to empty the house and they just pile everything up out in the street. Other places, they are required to move it to a safe lockup and give the occupant a chance to claim it.

 

[missypie]

Title will transfer upon foreclosure, but that doesn't get the occupants out. The occupants may get a "move out" letter. If they don't move out, the new owner will file an eviction suit. The occupant SHOULD NOT refuse any certified letters...those will keep her up to date on what is going on. Once the eviction suit had been filed, then there has to be a hearing. At the hearing, the judge decides how many days the occupant has to get out. It could be weeks or even months before she has to be out.

 

[Am_I_There_Yet]

It just depends. If you get an eviction notice, hand-delivered by a deputy, or a constable, you can have as little as 24 hours to vacate. The locks are changed after that.

Has anyone offered cash for the keys yet?

 

[LadyyRedd]

Thanks for all of the responses. Just an FYI, she is not living in the house and hasn't been for a while. There were just things that were left in the house that she's been going through and getting. There are a few things left that she wants to get out, but some setbacks (non house/foreclosure related) lately - like snow - have slowed that process down.

The debt isn't in her name and she's not at all being held responsible for it. No reason for her to file bankruptcy or any other things. She can't afford the house on her own.

She did call today and talk to the person in charge of the foreclosure case and was told by him that she would get a notice in the mail of a date that she has to vacate the house by after the foreclosure sale, so all is well. She actually may be done by the end of the weekend.

Kimya